Today’s play is to buy risk, sell volatility. January’s Open Market Committee meeting of the US Federal Reserve, minute of which will be released this week, should show confidence in US economic growth...
The world’s largest hedge fund, Bridgewater, is reportedly shorting a selection of European blue chips to the tune of $18 billion. Should European equity investors be nervous? No. The recent sell-off lacks the fundamentals of a sustained correction...
During the last few weeks, both investors and media have put aside cryptocurrencies to focus on traditional markets. This came quite naturally as equities suffered a substantial sell-off and volatility exploded. Meanwhile in the crypto market, it was the time of consolidation...
Japan's 4Q 2017 real GDP rose 0.1% Q/Q and annual 0.5% Q/Q, below expectation for annualized 1.0% increase. However, the Japanese economy has now experienced two years of growth. In a marginal shift Private consumption rose 0...
The last jobs report is still in everybody’s mind as it had some unexpected consequences. Indeed, the upside surprise in wage growth triggered last week equity sell-off and send equity volatility through the roof...
Following recent market drop, we see extended improvement on markets for the current week. MSCI World Index increased by 1.22%, closing at 2’076 points, its highest rate hike since April 24th 2017, supported by Materials (+1.79%), IT (+1.67%), Energy (1.64%) and Industrials (1.20%) sectors...
EUR/USD has been trading within a wide range since mid-January, as investors remain sceptical about further gains. After hitting 1.2537 on January 25th, the single currency has been grinding lower and moved as low as 1.2206 before stabilising at around 1.2320...
After last week’s carnage, we foresee an Asian recovery this week. Hang Seng is now trading at 29’706 points (+0.70%), Shanghai Composite at 3’145 (+0.78%), Kospi at 2’385 (+0.91%) and S&P/ASX 200 at 5’820 (-0.30%), Japan’s market is closed for a holiday...
Last week’s volatility in equities spurred investors into safe-haven US treasuries, pushing the 10-yr yield from 2.8% down to 2.6%. This Wednesday’s US consumer price data, we believe, will come in lower than expected, thanks to easing energy prices...
While resurgent volatility suggest that risk asset are still in jeopardy, in general high beta FX have not been materially affected. S&P 500 saw all sectors close down over 300bps as US yields rallied yet FX remained stable...
The FX market has been only slightly affected by the sell-off in equities. Moreover, even risk-haven currencies, such as the Japanese yen and the Swiss franc, were of limited interest to investors. Overall, the US dollar enjoyed renewed interest from traders. The dollar index hit 90...
Providing strong growth numbers following 2017 Annual GDP growth of 7.10%, 2017 December CPI and WPI Y/Y of 5.21% and 3.58% respectively, we see further potential for recovery in India...
The UK economy is doing fine. According to the first estimates, the economy grew by 1.5%y/y in the last quarter (beating estimates of 1.4%), which indicates that the UK also benefited from the acceleration of the global economy, together with a little help from a weaker pound sterling...
With markets focused on global yield, curves and risk environment RBNZ policy meeting will increase in relevance. There is growing faith in the reflation and central bank “normalization” story, which, counter to economic data has drifted to New Zealand...
The FX market has been only slightly affected by the equity market rout of the last few days; the same cannot be said of the bond market. Indeed, it seems that investors’ panic reaction has been contained to the equity and bond market as investors dumped stocks to rush into bonds...
Monday was Draghi’s meeting at Strasburg. We’ve had a rather positive signal from the President of the ECB, who confirmed that the economy is growing, but that inflation is still expected...
The crypto market sank deeper on Tuesday as the future of cryptos remains foggy. Bitcoin broke its 200dma, which stands at $6,275, to the downside and even fell below the $6,000 threshold during the Asian session...
Investors are getting way ahead of themselves in the current “risk off” environment. The end of “goldilocks” theory, which is driving sell everything mentality, does not have a structural support we would need for the pullback to snowball into an extended correction...
Released last Friday, January’s employment figures sent the greenback to higher ends, temporary at least. EUR/USD trades at 1.2453 (-0.43% since Thursday February 1st 2018) and USD/JPY 109.95 (+ 0.50%) while GBP/USD remains at 1.4120 (-1.01...
